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Post by GSV3MIaC on Nov 14, 2017 13:03:31 GMT
I suspect that a lot of the 15% crowd bought it to flip, assuming they could sell at a premium (or at least par .. in which case the buyers will be those assuming they can sell at a premium .. etc). This is the problem with SMs that allow a premium, and inadequate throttling of the initial sale(s). BHs wouldn't probably mess with a 1-2% premium on a mere £1-2k, but a lot of other folks would (likely did). If you read the threads 'will sell easily on the SM' figures prominently as a reason to buy it.
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Post by GSV3MIaC on Nov 13, 2017 20:19:14 GMT
Yes, the VR did at least highlight some of the potential issues, rather than leaving us to play 'hunt the pea' under some undefined number of seashells.
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Post by GSV3MIaC on Nov 13, 2017 20:13:38 GMT
Yep, seems major stride has been made. My only concern is that £1000 per punter may turn out to be slightly over-generous, we shall see (this is a rather small loan!) As predicted, £1k was way high .. should have been considerably lower if we were aiming for 'fair shares'. I also note that ISA/normal accounts can both grab a slice (totalling > the limit), which probably ought not be the case.
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Post by GSV3MIaC on Nov 13, 2017 18:41:18 GMT
I'm not keen on the structure . As it stands the amortising nature of the 15% second charge loan does nothing to improve the security of the first charge loan. Likewise the fixed / bullet repayment nature of the 12% first charge loan does nothing to improve the security of the second charge loan. Had it been the other way around, with a lower rate amortising first charge loan, then as it paid off it would have improved the security of both loans, including a higher rate fixed interest bullet repayment second charge loan. I might have had a piece of that. I guess the proposal is that the 12% bullet loan is bullet-proof (sorry!) anyway, hence the lower rate. Whether 15% is enough extra for the extra 2nd charge risk is arguable, although in the last month (assuming it goes that far) it'd be a pretty tasty uplift for little extra risk. I think I'll probably have some anyway, on the assumption the borrower has kept himself out of trouble for a few years now.
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Post by GSV3MIaC on Nov 13, 2017 18:33:14 GMT
I think by profiles he meant things like 'PBL XYZ' .. you can easily add 'Coventry' (if it isn't already there) or CV43, if that doesn't map to too small an area (round here a FULL postcode won't get you within 2 miles of a place .. but then 2 miles ain't too far to walk, it's a 9 mile round trip to get a paper on Saturday). Alternatively I guess we could approach it the other way, and say 'I'm going to WV15 on Sunday, anything I should photograph while I am there'?'
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Post by GSV3MIaC on Nov 13, 2017 14:28:57 GMT
Well yes, but there are a lot of 'one person families' looking for living space these days .. maybe just not in the same places that the students are.
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Post by GSV3MIaC on Nov 13, 2017 14:24:56 GMT
Personally I'm in favour of 'phone a friend' feedback to the platform, especially if they are venturing into a new area, or if they want someone(s) to underwrite it in some way ('yeah, that looks OK to me, I'd stick a couple of £100k in if it was 13% or better'). Platforms who know a lot about boats, or airplanes, may turn out to know 'not enough to avoid getting ransomed' when they dabble in property (and pubs are 'well specialist' IMO .. a half mile location change can turn it from a money spinner into a money pit, or (more often) an 'apply for PP to un-license it and turn it into residential'.)
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Ablrate (ABL) in Administration
IFISA (ABL)
Nov 13, 2017 14:18:22 GMT
Post by GSV3MIaC on Nov 13, 2017 14:18:22 GMT
Thank you - so if I need the money out I could transfer from the IFISA to my standard account and then withdraw it (at no cost). Obviously doing that would lose its tax-free status but I can only imagine I'd be doing that for some major reason such as a house purchase in which case losing tax-free status doesn't matter. Many thanks dawn .. note that this is, afaik, a flexible ISA, so you can transfer money back in (in the same tax year) if you have funds available, and thus keep the tax-free status (i.e. if you sold the house again!).
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Post by GSV3MIaC on Nov 13, 2017 14:15:06 GMT
re: Photos ..
There's (afaik) no problem with posting progress pictures on the main boards as long as they are only linked to a loan number ( PBL XYZ, MTZZ XXX, etc) .. or just posted in the appropriate thread. Do not post photos which show the exact location (geotagged, street name/number obvious, showing phone number of the occupant, etc.). Several folks already do this across many different platforms, and there have only been a couple which needed things blotted out before they were acceptable.
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Post by GSV3MIaC on Nov 12, 2017 18:30:18 GMT
Just you wait until I work out how to do the fire-breathing. Toasting-time. There's nothing against it in forum rules. Just as long as you do it politely and constructively. And leave Guff's deformed poppy out of it.
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Post by GSV3MIaC on Nov 12, 2017 13:32:37 GMT
Started investing in shares 30+ years ago though but have never truly mastered it. I'm not sure anyone has (Warren Buffet maybe?) .. even Mr Woodford seems to have the odd wobble. My best overall strategy seems to be 'run in the opposite direction to everyone else', but that only 'mostly works'.
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Post by GSV3MIaC on Nov 12, 2017 13:27:10 GMT
/personal view
Yep, if the borrower is rated 'dodgy', then you have to suspect that his lawyer, accountant, and valuer (in many cases the borrower seems to appoint a valuer, or supply a valuation) are likely 'no better than they should be' either. There are several platforms who have worked this out by losing considerable sums (either already, or 'are about to'). Making a secure loan to a dodgy borrower makes 'nailing a jellyfish to the wall' look relatively trivial .. and of course any personal wealth backing the loan is spectacularly mobile.
If someone has regularly cheated customers, HMRC, suppliers, and banks, why would we suppose they have a soft spot for unsophisticated consumer lenders and naive P2P platforms?
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Post by GSV3MIaC on Nov 12, 2017 13:15:29 GMT
Not an expert, but these are likely good for full recovery as the LTV is not too high and Lendy have 1st charge priority. However interest and overdue interest are far less certain, and highly dependent on how long it takes to sell. The house should be easier, but not sure how big the market is for boatyards, but obviously the area is highly desirable. The issue is 'how good was the valuation', given the planning issues around some of the boatyard facilities (moorings etc.) and the rather, errm, 'unusual' nature of the property, and I suspect, by now, a rather negative local ambience about the whole thing. I wish you luck, but I expect Ly might be dipping into the PF again (but not until it sells, which could be 'quite some time'). Unlike some other platforms, lenders don't get a vote as to whether to accept any offer(s).
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Post by GSV3MIaC on Nov 12, 2017 10:42:33 GMT
One would hope (and, from reading the survey, guess) that it is like the AC offerings and basically gets you an automatic (and invisible, although AC fixed that) share in some underlying loans. The question really revolves around the 'guarantee', if there is one .. AC have a (rather ill defined, IMO) PF to prop the underlying yield back up to 6% and guard the capital. FC/ZOPA offer a 'we'll buy you a bunch of parts which ought to yield you x% .. but no guarantee' approach (you can at least, with some effort, see what you've got). If it's a straight 'bond' (junk or otherwise) it's (as you say) a loan to the company, 'secured' (ho hum) on the company assets, whatever those might be. For most Ltd. companies I'd rather buy shares.
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Post by GSV3MIaC on Nov 11, 2017 21:56:23 GMT
True, which is why I'm glad my LC / ReBS accounts were not in an ISA this last year.
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